Tri-coat Paints has a current market value of $41 per share with earnings of $3

Finance Dec 03, 2020

Tri-coat Paints has a current market value of $41 per share with earnings of $3.64. What is the present value of its growth opportunities (PVGO) if the required return is 9%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) PVGO A

Expert Solution

PVGO = Value of stock - (EPS / Required rate of return)

PVGO = 41- (3.64 / 9%)

PVGO = 0.56

Answer : 0.56

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